Significance of DP BoM

[gurucharanscm]

The configuration and usage is well understood of this, but can someone please explain the significance of using this in DP when we anyways are exploding the demand of finished goods in supply planning (not necessarily APO SNP)? I am writing so as to attain some maturity to convince myself for the usage of this concept in DP... thanks for the replies.

[Former Member · Accepted solution]

GC,

There is no right or wrong answer.  It kind of depends upon what functionality you want to do in DP;  what functionality you want to do elsewhere; and what data you need in in order to achieve your solution goals.  In any solution, you always need to determine the best place to store and manage your data.

DP BOMs are particularly useful when preparing collaborative forecasts iteratively; where the forecast planner needs to have immediate visibility of the consumption of certain materials; without the necessity of having to explode the proposed demand plan through the entire supply chain.

If don't need to use DP BOMs, then don't.  Pretty simple.

Best Regards,

DB49

[Former Member · Accepted solution]

Hi,

To me DP BOM is something to plan for components and based on component availability I can Plan for my Finshed products.. I can sell as much as if i have the raw material or budget (if money is calcualted for the quantiy in DP itself). SO to have forecast for finished products based on the above two criterias I can plan for Finished products.

[former_member225716]

Hi Guru,

DP BoMs are designed by default to address a two-level bill. Independent

vs. dependent demand.

An example would be a Television with remote

Television and remote that are sold as one unit but can also be sold

separately.